TSMC has been Apple’s chief supplier for quite some time now and it will obviously be looking to increase its margins with the development of its 7nm chips. The Apple A12 SoC is said to be the biggest revenue generator for TSMC, as the chip giant is looking to increase its total profitability to a record high this year.
TSMC Can Command a Higher Profit Margin From the Apple A12 7nm’s Cutting-Edge Technology
Dubbed the Apple A12 for now, TSMC is set to manufacture the SoC for the 2018 lineup of iPhones, which will be made on the 7nm architecture. For comparison purposes, the A11 Bionic housed inside the iPhone X, iPhone 8 Plus and iPhone 8 is made using the 10nm FinFET technology.
The lower the lithography of the chipset, the more beneficial it will be in a variety of cases. For example, smaller process sizes tend to lower costs while increasing density, leading to chips running faster at the same heat output. This is called ‘performance-per-watt’ and it also contributes greatly to battery life, which is going to be the forte of the Apple A12 once it powers the iPhone 2018 lineup.
The A12 is expected to be one of the first mass-production chips to be made at 7nm. It is possible that iPhone sales may drop as Apple will still be charging a premium from its customers but TSMC can still benefit from this partnership. As the chip manufacturer is Apple’s only supplier and because making 7nm wafers is a cutting-edge process, it can command a high price for its efforts to make the best possible silicon for Apple.
The California-based giant will be announcing three brand new iPhones during its September keynote. One is going to be the iPhone X successor and will sport the same 5.8-inch OLED panel, while a 6.5-inch (rumors are also stating that this model might get a 6.4-inch screen) iPhone X Plus will also be announced.
The last model, the iPhone 9 is going to be a cheaper model and might also be offered in a dual-SIM variant while costing just $550.
News Source: DigiTimes